Please answer the attached questions. Preferred sources if necessary are textbook and or scholarly...

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Please answer the attached questions. Preferred sources if necessary are textbook and or scholarly journals.
	
Document Preview: 1. Price elasticity of demand is an important tool for managers in in a selling environment in deciding what to put on sale. Assume you are the District Manager of a grocery chain which sells everything like Ralphs or Albertsons. What will you put on sale in your district during the Valentine's Day week? You must provide your reasons.2. As a Manager, your goal is to maximize profit of your business. Assume you are in charge of managing your company's costs - you are the Controller of Accounts and all purchases must be approved by you. With appropriate examples, illustrate how you and your Division will contribute to maximizing profit of your business.

David · Accepted Answer

1. Price elasticity of demand is an important tool for managers in in a selling environment 
in deciding what to put on sale. Assume you are the District Manager of a grocery chain 
which sells everything like Ralphs or Albertsons. What will you put on sale in your district 
during the Valentine's Day week? You must provide your reasons. 
Answer: 
I would put all those products on sale which have inelastic demand. The products for which 
demand is inelastic; there will be small change in the quantity demanded to any change in 
price. To be specific, if price increases by 1%, the quantity demanded would fall by less 
than 1%, thereby causing increase in total revenue. This implies that the product for which 
demand is inelastic, total revenue can be increased by charging a higher price.  
The Valentine’ Day week has following days; 
7 Feb Rose Day 
8 Feb Propose Day 
9 Feb Chocolate Day 
10 Feb Teddy Day 
11 Feb Promise Day 
12 Feb Kiss Day 
13 Feb Hug Day 
14 Feb VALENTINE'S DAY 
During the Valentine’ Day week, products like, rose, teddy bear, watches,

Please answer the attached questions. Preferred sources if necessary are textbook and or scholarly journals. Document Preview: 1. Price elasticity of demand is an important tool for managers in in a...

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